What Remedies Are Available for Breach of Contract in Connecticut?

A breach of contract can have a devastating effect on a Connecticut business. Even in a best-case scenario, it can slow things down and cost not only money but also reputation. Commercial law does permit you to seek remedies for breach of contract, so talk to a lawyer in East Hartford, CT as soon as possible to find out what your options are and what remedies are best to seek in your situation.

There are three main remedies in a breach of contract situation:

1. Liquidation Damages

Liquidation damages are specific sums of money or particular remedies specified in the original contract. If one party has breached the contract and refuses to pay the penalty that agreed upon in that contract, the court can compel the terms of any penalty provision to be kept.

2. Compensatory Damages

Compensatory damages are meant to reimburse one party for the losses they have sustained because of the breach of contract. If your business lost money because of the failure of a partner to uphold the terms of a contract, that should be reimbursed to you. If, for example, you were unable to complete a project because a vendor did not provide the materials as promised, the vendor should reimburse you for the lost income from the lost project, not just a refund of the cost of the materials.

3. Performance of Contractual Obligations

Finally, the court can also compel the other party to fulfill the terms of the contract. This is often the ideal route, though in some cases if a breach of contract has occurred because the party does not have what is needed to fulfill their obligations, this remedy may not be possible.

In addition to the three primary damages mentioned above, in very rare cases it may be possible to collect punitive damages. Punitive damages are usually only applied by the court in especially egregious breach-of-contract situations and are not designed to reimburse but to punish, and thus warn others away from engaging in similar behavior.

What Counts as a Contract, and How Do You Prove a Breach?

A contract has to be proposed by one party, accepted by the other, and contain the exchange of something of value to count as a contract. In Connecticut, both written and oral contracts can be enforced by the courts, but oral contracts are notoriously difficult to prove.

To prove a breach, you will need to show that there was a valid contract in place, that there were specific elements of the contract that were violated, and that you suffered damages as a result. It’s not enough to simply show that the terms of the contract were breached. You must show that your business suffered an injury, usually a loss of money, but also a loss of time or reputation.

For help with any element of commercial law, reach out to the Adler Law Group, LLC in East Hartford, CT.

Posted in Uncategorized | No Comments »